A

Summer Internship Project

ON
“A Study On Understanding Consumer
Behavior in Choosing Life Insurance
Product”

IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF

MASTERS OF BUSINESS ADMINISTRATION (MBA)

UNDER THE GUIDANCE OF

Dr. Sachin Lad

SUBMITTED BY

Kaushal Rathod

ADT23MGTM0141

2023-25

SUBMITTED TO

MIT COLLEGE OF MANAGEMENT, PUNE

 DECLARATION

I, Kaushal Rathod of Masters of Business Administration Semester - III of MIT

College of Management, Pune, hereby declare that I have successfully completed
this Summer Internship Project on “A Study On Understanding Consumer
Behavior in Choosing Life Insurance Product” during the Academic Year
2023-25. The information incorporated in this report is true and original to the
best of my knowledge.

Date: Kaushal Rathod

Place: Pune Name & Signature of Student

Enrollment No. ADT23MGTM0141

 ACKNOWLEDGEMENTS

“Words have never expressed human sentiments. This is only an attempt to express my deep
gratitude which comes from my heart.” In preparation of this Summer Internship Project (SIP)
report I feel great pleasure as it gives me extensive practical knowledge and learning experience
for the future. I wish to express my sincere thanks to the Dr. Sunita Karad, Director MITCOM.
I express my deep sense of gratitude to my guide Dr. Sachin Lad for his valuable guidance
during my SIP work. I am also thankful to Mr. Arjun Kale for their valuable inspiration and
guidance provided to me throughout the Internship program.

Date: Kaushal Rathod

Place: Pune Name & Signature of Student

Enrollment No. ADT23MGTM0141

CERTIFICATE
 Table of Contents

Chapter Page No
Title of Content
No.
A) Acknowledgement / College Certificate/ Company Certificate/
0-1
Student's Declaration

I Introduction 1-5

2 Industry Profile 6-7

3 Company Profile 8-16

4 Literature review / Theoretical background of the study 17-20

5 Objectives of SIP 21-22

6 Project allocated during SIP 23-25

7 Research Methodology 26-28

8 Data Analysis and Discussion 29-38

9 Major learnings & contribution to host organization 39-40

10 Conclusion & Recommendations 41-42

11 Summary of SIP 43-44

12 Bibliography/ References 45-46

 CHAPTER 1
INTRODUCTION

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With the world becoming more uncertain, life insurance has become a vital financial tool for
individuals and families. It is continuously emerging with life assurance as a tool to help the
family to be secure and feel peace of mind. But choosing so decides to offers its policy in life
insurance policies is influenced by a myriad of factors, which vary across its demographics,
conditions of its economy and also the individual preferences.

This is important for insurance companies, policymakers and consumers alike to understand. This
article draws interest to explore the determinants which impact the customers' investment decisions
on life insurance.

Analyzing socio-economic status, awareness levels for insurance, trust of providers and marketing
strategies and personal financial goals, we can understand customer behavior and preferences.
Beyond providing to the body of knowledge in the area of insurance, these findings will aid
insurers to develop their products and marketing strategies so that it is better to respond to the
needs of the clients that they serve. Given the continued evolution of the life insurance market,
these are dynamics that will be important for enabling consumers to make informed decisions as
well as for making them more satisfied.

This study uses a mixture of qualitative and quantitative research approaches to help yield a
thorough description of the variables affecting life insurance investment, laying the base for
better relationships between providers and consumers in this important field.

A myriad of socioeconomic conditions, market dynamics and individual preferences, all affect
the decision to invest in life insurance policies. Life insurance is a very important part of personal
financial planning because, besides giving financial security the policyholder and his family gets
the peace of mind that they are being taken care of But even though it's important, a lot of
potential customers hesitated or simply remained unsure about making the investment in these
policies.

The objectives of this study are to identify and analyze their key factors to explain the customers'
decisions that involve life insurance policies purchases. These factors (demographic variables (age,
income, education), psychological influences (risk perception, trust in providers), marketing
strategies and cultural attitudes) may be understood to shed valuable light on consumer behavior.

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External factors like economic conditions, and regulatory environments also
contribute to the determinants of customer attitude and decisions. The study explores
these dimensions to give us insight into the barriers and motivators facing
investors when making investments in life insurance. And the findings contribute
to current knowledge in the field of insurance sector on consumer behavior adding
to what may become practical suggestions for insurance providers in the way of
product development and marketing. The continuing evolution of the life insurance
industry will have the need for a better understanding of these influencing factors
will help to create informed decision making and to enhance customer
engagement. Through this exploration, the final goal is to bridge the gap between
what life insurance providers can offer the market and what the market truly
wants.

Life Insurance Policy

Life insurance policy is an essential financial instrument that gives an individual and family
peace of mind and also security. At their core, life insurance offers a promise: If the
policyholder dies, they'll receive a specified sum of money once paid out—also
referred to as the death benefit—paid to designated beneficiaries. This financial
protection helps to provide things ranging from funeral cost, outstanding debts and
living expenses so that friends and relations are not positioned in a perilous monetary
circumstance.

There are various kinds of life insurance: term life insurance, whole life insurance, and
universal life insurance, with differing benefits and especially suitable for different needs and
situations.
Whole and universal life policies are for life insurance, or for as long as you pay the premiums,
while term life gives you coverage for a set period of time. Life insurance isn't about just
keeping more money in your pocket, it also allows you to have a proactive part in financial
planning.

Life insurance is used by people as part of their larger wealth and asset accumulation plan, as
well as for estate planning and risk management. However, many people are underinsured or

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unaware of all that life insurance can do, bringing awareness and education in this area to bear.

This is an important topic because as social dynamics and requirements change, the life
insurance policies are always updating with the scheme which makes them an important
concept to find out and understand in the personal as well as professional fields. This then gets
into the features, the benefits, and the implications of life insurance policies in the context of
today's messy financial landscape.

The Growing Importance of Life Insurance

Life insurance is more than just a financial product; it is a commitment to safeguarding one’s
family and ensuring their future well-being. The global pandemic has underscored the
unpredictability of life and the importance of having adequate insurance coverage. According
to a report by Swiss Re, the demand for life insurance surged during the COVID-19 crisis as
individuals recognized the need for financial security in uncertain times. This heightened
awareness presents both challenges and opportunities for insurers to engage with consumers
more effectively

Psychological Factors

Psychological factors such as risk perception and emotional responses significantly influence
purchasing decisions. Many consumers approach life insurance with a mix of apprehension and
hope, often driven by personal experiences or societal norms regarding family protection. For
instance, individuals who have experienced loss may be more inclined to purchase life
insurance as a means of providing security for their dependents.

Socio-Economic Influences

Socio-economic factors also play a crucial role in shaping consumer preferences. Income
levels, education, and cultural background can affect how individuals perceive the value of life
insurance. In emerging markets, where financial literacy may be lower, consumers might

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prioritize immediate needs over long-term security, leading to underinsurance or misinformed
choices. Conversely, in developed markets, consumers may have greater access to information
and resources, allowing them to make more informed decisions about their coverage options.

The Role of Technology

The advent of digital technology has transformed how consumers interact with life insurance
products. Online platforms enable consumers to research policies, compare prices, and read
reviews with unprecedented ease. Insurers are increasingly leveraging technology through
digital marketing strategies, personalized communication, and online customer service to
engage potential policyholders effectively. This shift not only enhances consumer convenience
but also empowers them to make informed decisions based on comprehensive data.

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 CHAPTER 2
INDUSTRY PROFILE

Page 6 of 46
The Leading Solution Pvt. Ltd. works in the financial sector where it offers financial
recommendations for people who can’t invest or simply do not want to. It is established that
the company occupies an important position in the industry and, therefore, aims to implement
versatile solutions that meet the current and future requirements of clients. Its services are
offered in an effort to enhance organizational productivity, develop commercial and economic
ventures, and create durable added worth. As competition intensifies, companies within this
industry will have to focus on client solutions to meet the clients’ needs. As a key player in the
industry, the company focuses on delivering innovative solutions tailored to the evolving needs
of its clients. Its services are designed to improve operational efficiency, support business
growth, and deliver long-term value. With increased competition, businesses in this sector must
adopt a client-centric approach, offering tailored solutions that align with clients' unique needs.

The Leading Solution Pvt. Ltd. understands this area well, using its experience to sell specific
solutions and to develop a lasting partnership with its clients. Other relevant competitors in the
similar space include TCS, Infosys, Wipro, and many others that offer these services. As a key
player in the industry, the company focuses on delivering innovative solutions tailored to the
evolving needs of its clients. Its services are designed to improve operational efficiency,
support business growth, and deliver long-term value. With increased competition, businesses
in this sector must adopt a client-centric approach, offering tailored solutions that align with
clients' unique needs. The Leading Solution Pvt. Ltd. excels in this area, leveraging its expertise
to deliver customized solutions and building long-term relationships with its customers. The
competitive landscape includes companies such as TCS, Infosys, and Wipro that also provide
similar solutions. Although it is not overly unique, The Leading Solution Pvt. Ltd. stands out
by having large enterprises that will keep it competitively positioned.

The company has realized sustained revenue growth for several years in view of innovation,
partnership, and diversification of clients’ base. It seems as the days go by, The Leading
Solution Pvt. Ltd. will have an even brighter future in financial services such as mutual funds,
BOB, etc. As a key player in the industry, the company focuses on delivering innovative
solutions tailored to the evolving needs of its clients. Its services are designed to improve
operational efficiency, support business growth, and deliver long-term value. With increased
competition, businesses in this sector must adopt a client-centric approach, offering tailored
solutions that align with clients' unique needs. The Leading Solution Pvt. Ltd. excels in this
area, leveraging its expertise to deliver customized solutions and building long-term
relationships with its customers. The competitive landscape includes companies such as TCS,
Infosys, and Wipro that also provide similar solutions. However, The Leading Solution Pvt.
Ltd. differentiates itself through large enterprises allowing it to maintain a strong market
position.

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 CHAPTER 3
COMPANY PROFILE

Page 8 of 46
The Leading Solutions is the one-stop solution provider for all your financial needs. Our
objective is to serve the customers with the best solution for directing their finances in the most
profitable direction.

The company is able to facilitate various training and development programs with top B-
schools and we have already trained thousands of interns to date. We have liaison with more
than 50 universities in India with a base size of 800 and above campuses. Keeping in mind
the most critical needs in today's context, we have emerged as a service partner of various
banks providing a one-stop solution offering a gamut of services.

Thus, our mission is to establish high standards of professional etiquette and to effectively
facilitate a comprehensive and accomplished system of continuing professional development
for every possible profession through our exceptional training solutions.

TLS is one of the developing consulting firms in India. At TLS, we give broad administration
services to high and HNI clients. Our highly trained and specialized team engages with
customers from across the nation as well as those based abroad. We facilitate all the services
needed to manage clients' money and plan for their personal and family's present and future
needs.

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 Our Mission: This section includes an image of a large golden Bitcoin symbol with an
upward trending arrow, surrounded by stacks of coins. The text reads: "To assemble a
world class business through high quality and genuine budgetary arrangements upheld
by sharp research and master group. The arrangements are conveyed by specialists who
comprehend the particular yearnings of each customer."

 Our Vision: This section includes an image of wooden tiles with letters spelling out
"VISION" on an orange background. The text reads: "Our motive is to upgrade the
perception of investors moving them from traditional investment decision making to
diversified one. In this dynamic economy it is always better to diversify your funds. We
work on the core mentality of investors and try to shift their interest from traditional to
modern mind set by providing them greater choices to invest. To expand our piece of
the overall industry year on year and keep up a similar dimension of involvement for
each customer. What's more, guarantee that we become the most profitable resource for
every customer."

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 The services offered by The Leading Solutions, which include:
1. Consulting Services
2. Accounting Services
3. Taxation Services
4. Portfolio Management
5. Recruitment Services

 The Leading Solutions offers Traditional Investment Plans, which include:

1. Mutual Fund
2. Insurance
3. Real Estate
4. Estate-Planning
5. Health Insurance
6. Personal Loan
7. Fixed Deposit
8. Unit Link Insurance Plan

Page 11 of 46
SERVICES

1. Consulting Services
We gaining importance as world economic engine and with the introduction of the idea of
International Business, each business in each country is making an attempt to induce connected
with one additional despite of the regional variations. TLS have a bunch of consultants that
provides due diligence to the various businesses relating to their essential business choices like
Merger and Amalgamation, Investment and growth into the new areas, etc. and that we
additionally facilitate in characteristic the new and effective sources of benefits whereas
avoiding risk. We have a tendency to principally offer the subsequent services:

 Corporate Development & Finance

 Investment

 People & Management

 New Market/Partner/Vendor analysis

 Operations

 Technology.

2. Accounting Services

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Accounting includes recording of financial transactions along with storing, sorting,
retrieving, summarizing, and presenting the results in various reports and analyses.
Accounting is core professional task which needs expertise and experience. One part of
accounting focuses on presenting the financial information in the form of general-
purpose financial statements (balance sheet, income statement, etc.) that are distributed
to people outside of the company.
These external reports must be prepared in accordance with generally accepted
accounting principles often referred to as GAAP
With a vast experience in the industry, we are dedicated to provide customised
accounting solutions to our clients. Our team, with its immense expertise with latest
analytical tools and technologies provide cutting-edge innovative solutions to your
accounting needs.

Page 13 of 46
 1. Portfolio management

Portfolio management is the art and science of making decisions about investment mix and
policy, matching investments to objectives, asset allocation for individuals and institutions,
and balancing risk against performance.

Portfolio management is all about determining strengths, weaknesses, opportunities and

threats in the choice of debt vs. equity, domestic vs. international, growth vs. safety, and
many other trade-offs encountered in the attempt to maximize return.

It is important for an individual to diversify his investment portfolio as to reduce risk and to
gain maximum returns. So we, hereby, provide assistance in diversifying your investments. It
is important for an individual to diversify his investment portfolio as to reduce risk and to
gain maximum returns. So we, hereby, provide assistance in diversifying your investments.

2. Recruitment Services

Recruitment refers to the overall process of attracting, shortlisting, selecting and appointing
suitable candidates for jobs (either permanent or temporary) within an organization.
Recruitment can also refer to processes involved in choosing individuals for unpaid roles.
Managers, human resource generalists and recruitment specialists may be tasked with
carrying out recruitment, but in some cases, public-sector employment agencies, commercial
recruitment agencies, or specialist search consultancies are used to undertake parts of the
process. Internet-based technologies which support all aspects of recruitment have become
widespread.

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Recruitment Process

The recruitment process includes three basic steps, job analysis, sourcing, and screening and
selection.

Job Analysis

Job analysis documents the knowledge, skills, abilities, and other characteristics (KSAOs)
required or desired for the job. These KSAOs dictate what is required for a job, and are used
for job descriptions, job specifications, and job evaluations.

Sourcing

Sourcing involves the use of one or more strategies to attract or identify candidates. Sourcing
can be done via internal or external recruitment advertising, using appropriate media, such as
job portals, newspapers, social media, business media, specialist recruitment media,
professional publications, window advertisements, job centers, or in a variety of ways via the
internet.

Screening and Selection

Screening and selection follow sourcing. TLS filters candidates according to specific
requirements.

5. Taxation Services

Taxes are involuntary fees levied on individuals or corporations and enforced by a

government entity—whether local, regional, or national—in order to finance government
activities. In economics, taxes fall on whoever pays the burden of the tax, whether this is the
entity being taxed, like a business, or the end consumers of the business's goods.

Types of Taxes

 Income Tax: Levied on personal income.

 Corporate Tax: Levied on business profits.

 Sales Tax: Levied on the sale of goods and services.

 Property Tax: Levied on property ownership.

 Tariff: Levied on imported goods.

 Estate Tax: Levied on the value of an estate at the time of death.

Role of IRS

The Internal Revenue Service (IRS) is the U.S. government agency responsible for the
collection of taxes and enforcement of tax laws. Understanding local tax laws is crucial for

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both individuals and corporations to ensure compliance and avoid penalties.

Page 16 of 46
 CHAPTER 4
LITERATURE REVIEW

Page 17 of 46
Literature Review / Theoretical Background of A STUDY ON FACTORS
AFFECTING CUSTOMERS INVESTMENT TOWARDS LIFE
INSURANCE POLICIES

Various important factors influence to invest in life insurance policies such as

individual characteristics, social influence, economic conditions and government
frameworks. This literature review synthesizes studies and theories about these
determinants.

1. Individual Factors

o Demographic Influences: The demographic effects on life

insurance investment decisions are studied. It turns out, that age,
income and education level are very important. People younger, or
less risk averse, may perceive less need for life insurance and people
older or more risk adverse are likely to value this life insurance
product due to obligations to family, and their own financial security
(Duncan & McCormick, 2008). Gorham et al. (2013) show that
individuals with higher income levels make more investments in life
insurance, who have more disposable income are aware of the value
of financial protection.

o Psychological Factors: Cause and effect between psychological

constructs of risk perception and trust in insurance provider and
investment behavior are important. According to the Theory of
Planned Behavior (Ajzen, 1991) such attitudes towards life
insurance, subjective norms, perceived behavioral control as
behavioral determinants significantly affect the decision to
purchase. Arora & Srinivasan (2020) found that those consumers
who are likely to perceive life insurance as the only way to attain
financial security are more willing to invest. Emotional factors, such
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 as the fear of dependents being left permanently financially unstable,
can provide the impetus for an individual to want to take out life
insurance.

2. Social Factors

o Cultural Influences: The perceptions and attitudes to life insurance

are greatly influenced by cultural context. Khan and Ali (2020) find
that life insurance products are more accepted and utilized in
cultures that have greater emphasis placed on financial planning. On
the other side, if discussions on dying or such financial products are
taboo in their culture, then people will not have an inclination to
think about the life insurance.

o Social Influence and Peer Networks: This decision making is also

greatly influenced by family and social networks. Recommendations
from family members or peers can improve

3. Economic Factors

 Economic Conditions: Macroeconomic factors such as commodity prices,

claims, and benefits affect life insurance. During economic downturns,
consumers prioritize immediate financial needs over life insurance.
Conversely, a stable or growing economy encourages life insurance
investment.

 Marketing and Product Accessibility: Marketing strategies and product

availability significantly influence consumer investment. Research is
recommended to inform potential customers about life insurance. Online
platforms play a crucial role in reducing the distance between consumers
and products.

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 4. Regulatory Environment

 Impact of Regulation: Customer trust and willingness to invest in life

insurance depend on the regulatory landscape. Transparency and consumer
protection regulations improve confidence in insurance providers. Strong
regulation can enhance investor trust and life insurance investment rates.

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 CHAPTER 5
OBJECTIVES
OF SIP

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Objectives of SIP
1. To explore the various factors influencing customer investment decision in life
insurance.
2. To study and analyze the impact of various demographic factors on customers' life
insurance investment decision.
3. To evaluate preferences of the customers while taking life insurance investment
decision.
4. To study and rank the factors responsible for the selection of life insurance as an
investment option.
5. To offer suggestions for popularizing life insurance among the public at large.
6. To study consumer behavior patterns related to life insurance investment, including
motivations for purchasing and barriers to entry.
7. To collect and analyze customer feedback on their experiences with life insurance
providers and products, identifying areas for improvement.

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 CHAPTER 6
PROJECT ALLOCATED DURING
SIP

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Project allocated during SIP Day Wise Schedule and Learnings
Orientation:
 Introduction about Company
 Internship Schedule
 About profiles
 Allotment of Company guide
 Activities
 About opportunities by the company
 Interaction with senior management
Project Allotment:
 Project tools
 Market Research
 Interpretations
 Title
 Sample report work
Finance & Taxation:
 Basics of Tax
 Flow of Tax Calculation
 Understanding of Tax free countries
 Tax Terminologies
 GST Understanding
 Heads of Income
 Income Tax Act 1961
 Calculations of Income Tax
 Types of Individuals
 New Income Tax Slabs in Budget 2023
Financial Sector:
 Brief about Financial Sectors
 BFSI Knowledge
 BFSI opportunities
 Financial Sector available in India
 Career Planning
 Comparison between Financial Sectors
 Merits/Demerits of each Financial Sectors

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  Business Presentation about Financial Sectors
Personality Development Session
 By Director Sir
Knowledge about the Products:
 Real Estate
 Portfolio Management
 Insurance
 Health Insurance Products
 Gold
 Mutual Funds
 Share Market Products
 Loans
 Corporate Bonds
 Fixed Deposits
 Client Services

Detailed information on the life insurance policy which was given to pitch to customers.
IndiaFirst Life Mahajeevan Plus Plan (Non-Linked, Participating, Individual, Limited
Pay, Money Back Savings Life Insurance Plan)
IndiaFirst Life Maha Jeevan plan helps to accumulate your savings systematically, through
regular premium contributions based on your income and needs. Be sure to receive tax
benefits and death benefits. Invest in IndiaFirst Maha Jeevan Plan at the minimum age of 20
to secure your future health insecurities.
Product link over Bank of Baroda website
https://www.bankofbaroda.in/personal-banking/insurance/life-insurance/indiafirst-maha-
jeevan-plan

https://www.indiafirstlife.com/individual-life-insurance/savings-plan/mahajeevan-plus-plan

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 CHAPTER 7
RESEARCH METHODOLOGY

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Research Objectives
To identify and analyze the key factors influencing investment decisions in life insurance.
To assess customer awareness and perceptions regarding life insurance.
To evaluate the effectiveness of marketing strategies used by insurance companies.
Research Design
The research will employ a mixed-methods approach, integrating both qualitative and
quantitative methods to gather comprehensive data on consumer behaviour. This
approach will allow the study to capture both numerical data (quantitative) and insights
into consumer thought processes (qualitative).
Qualitative Research Design: The study will conduct in-depth interviews and focus
groups to explore consumer attitudes and perceptions regarding insurance products.
Quantitative Research Design: A survey-based approach will be utilized to collect data
from a large sample of consumers, allowing for statistical analysis of the factors affecting
their decisions.
Data Collection Methods
The data collection method used to obtain the desired information from primary sources
has been through direct interview, and questionnaire has been used as an instrument.

Research Plan
Target population and universe: Mumbai
Sampling unit: Life insurance policyholders
Sampling method: Purposive sampling
Sample size: 50
Research Instrument Design
The survey questionnaire and interview guide will be designed based on the conceptual
framework developed for understanding consumer behavior. The questionnaire will
include the following sections:
 Demographic Information: Age, gender, income, education, occupation.
 Risk Perception and Attitudes: Questions to assess the consumer’s perception of
risk, willingness to pay for insurance, and attitude toward financial security.
 Product Preferences: Types of insurance products preferred (life, health, vehicle,
property), coverage options, premium affordability.
 Purchase Decision Process: Factors considered during product evaluation, such as

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 brand reputation, claim settlement ratios, peer recommendations, and online research.
 Technology Influence: Use of online platforms, mobile apps, and other digital tools
in researching and purchasing insurance.

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 CHAPTER 8
DATA ANALYSIS &
DISCUSSION

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Questionnaire –

1.Age

 20-30
 30-40
 40-50
 Above 50

2. Gender
 Male
 Female

3. Monthly income
 5,000-15,000
 15,000- 30,000
 30,000-60,000
 60,000- 1,00,000
 Above 1,00,000

4. Occupation

 Student
 Businessman
 Employed
 Unemployed

5. PREFERENCE TOWARDS LIFE INSURANCE COMPANIES

 L.I.C
 Hdfc standard life insurance
 Icici prudential
 Aditya Birla Sun Life Insurance Company Limited
 Bank of Baroda
 Other

6. Types of policy you preferred

 Endowment
 Term plan
 Unit linked
 Money back

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  Others

7. Most Preferred Feature you choose while investing

 Larger risk coverance

 Easy access to agents
 Money back guarantee
 Low premium
 Company’s reputation

8. Factors you look before investing in Life Insurance

 Tax benefit
 Risk coverage & saving
 Security with high return
 Insurance
 Premium Charges

9. What factors do you believe discourage investment in life insurance?

 Cost of premiums
 Lack of understanding
 Complexity of products
 Distrust in providers
 Other

The respondents of different age groups, occupation, income and gender for study have been
selected through purposive sampling method in order to achieve the research objectives.

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The study revealed that age, income, and education level significantly impact customers'
investment decisions. Younger individuals often prioritize other financial commitments, while
older individuals tend to value life insurance for its protective benefits.
From the collected data from the survey on the factors affecting customers’ investment in life
insurance policy, we get valuable information on different demographic and preference
categories.

1. Age Distribution
20-30 years: Less often, they show lower investment interest in life insurance, as in many cases
such investment interest is hindered by focus on their immediate financial priorities (e.g.
education, travel) instead of long-term security.
30-40 years: Once individuals start families and would like to financially secure for their
dependents, they come to recognize this group and become interested in life insurance.
40-50 years: Because financial responsibility peaks during this age group and there’s a greater
awareness of the need for security, this age group usually takes its life insurance more seriously.
Above 50 years: This has caused interest in products that return the interest, and that also cover
end-of-life expenses. But life insurance can also be a way to leave a legacy for your loved ones.

2. Gender
Male: Traditionally, males are more apt to invest in life insurance because they tend to be the
financial providers.
Female: Females are became more involved in financial decision making, especially the
policies which ensure security of their families.

3. Monthly Income 5,000-15,000: Are likely to see the least investment because of limited
disposable income. Medical insurance may be something that takes a back seat to basic needs
to this group.
15,000-30,000: There is an interest in this segment, particularly for low cost products, but may
be hesitant due to lack of money.

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30,000-60,000: It is that disposable income is allowing for a high investment interest, leading
to an increase in investment interest.
60,000-1,00,000: These types of group tend to have strong interest in a wide range of life
insurance products and frequently put better coverage high on the list. Above 1,00,000: Perhaps
is likely to invest a lot in life insurance for wealth management and tax benefits, offering a full
coverage option.

4. Occupation Student: Low investment interest, education costs and immediate needs.
Businessman: Its importance for financial security. Employed: There are often varied levels of
interest by this group which can be influenced by employer provided options. Unemployed:
Financial instability and basic living expenses priority lead to very low investment likelihood.

5. Preference towards Life Insurance Companies L.I.C: It often takes the preference of
reputation, and having its government backing, mostly popular amongst older generations.
HDFC Standard Life Insurance and ICICI Prudential: On the back of modern marketing and a
wide range of products, they’re gaining popularity among younger and middle-aged
consumers. Aditya Birla Sun Life Insurance Company and Bank of Baroda: So these may be
targeted to specific segments depending on the customer service experiences and product
knowledge. Other: Shows that the competition is heating up, or that there are emerging players
in the market.

6. Types of Policies Preferred Endowment: Appealing to mid career professionals, who are
also preferred by those looking for a combination of protection and savings. Term Plan: With
its affordability and higher coverage at lower premiums gaining traction, especially with
younger people staking families. Unit Linked: It’s also popular amongst those looking for
investment with insurance (typically favoured by higher income groups). Money Back: It is
much preferred by families looking for guaranteed returns and attracts those who desire
liquidity and security.

7. Most Preferred Features Larger Risk Coverage: Most consumers have indicated a primary
concern that is emphasized by security. Easy Access to Agents: Shows that personalized
service is a key factor involved in the decision making. Money Back Guarantee: It reflects a
preference for products that provide returns expressing the demand for assurance. Low
Premium: Important for price sensitive categories in particular with younger and lower income
segments. Company’s Reputation: It highlights the fact that trust and reliability are very
important selection criteria on the provider.

8. Factors to be considered before investing. Tax Benefit: The first High priority, indicating
consumer is looking for the dual advantage regarding their investment. Risk Coverage &
Saving: The propensity to buy is strong who prefers products that both offer and growth.
Security with High Return: Meaning a leaning towards investments that are secure and returns
that are reasonable. Insurance Premium Charges: Especially among lower income groups, cost
sensitivity is important.

9.Discouraging Investment Variables Cost of Premiums: Particularly for those lower income
segments, it is the most significant barrier. Lack of Understanding: It indicates a need for the
educational initiatives that will demystify the life insurance products. Complexity of Products:

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It points to a necessity to simplify product offerings to make it accessible. Distrust in Providers:
This is a high stake area that needs improvement, this involves building trust in the company
to achieve transparency and customer service.

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 CHAPTER 9
MAJOR LEARNING FROM SIP

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Major Learnings

It was found that age, income, and education level affect significantly customers investment
decisions. Older individuals prefer life insurance for is protective purpose and younger people
do not give life insurance because it’s not their top priority of spending in other financial
application.
Trust in insurance providers and individual risk perception play critical roles in influencing
investment decisions. Customers who perceive a higher risk of financial insecurity are more
inclined to invest in life insurance.

Common barriers identified include perceived high costs, complexity of products, and a general
distrust of insurance companies. Addressing these concerns through transparent
communication and simplified product offerings can encourage investment.

Many potential customers lack sufficient awareness and understanding of life insurance
products. Educational initiatives can bridge this gap, highlighting the importance of life
insurance in financial planning.

Recommendations from family and friends are powerful motivators for investment in life
insurance. Social networks significantly impact consumer decisions, emphasizing the
importance of word-of-mouth marketing.

The importance of understanding customer behavior in the life insurance market. By addressing
awareness gaps, building trust, and tailoring marketing strategies to meet consumer needs,
insurance providers can enhance engagement and increase investment in life insurance policies.

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 CHAPTER 10
CONCLUSION &
RECOMMENDATIONS

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This study can provide some insights about the factors that affect customers’ investment in life
insurance policies, which means that much of consumers’ behavior in this field is complicated.
Several significant factors influencing investment decisions are shown by key findings:
demographic factors, awareness levels, trust in providers, cultural attitudes, social influences
and economic conditions among others. Despite the interest, life insurance remains under-
insured because of gaps in understanding, perceived costs and distrust of the insurance industry.
Insurance providers must address these challenges well to increase engagement and investors
commission in life insurance. Through practical policies in the areas of education, trust building
and experience for potential policyholders, the industry can work better for policyholders.

Recommendations

Enhance Consumer Education: Make comprehensive educational programs and materials

about insurance life products benefits and features. Breach the screens, if you will, with
different platforms like webinars, workshops and online content, to widen your audience.
Encourage satisfied customers to share their positive experiences through testimonials and
referrals. Develop incentive programs for existing customers who refer new clients to promote
word-of-mouth marketing.
Simplify the complexity of life insurance products by creating clearer, more straightforward
policy options. Use plain language in communication to make information accessible to a wider
audience.

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 CHAPTER 11
SUMMARY OF SIP

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This project, titled " A Study on Understanding Consumer Behavior in Choosing Life Insurance
Product " aims to explore the complex dynamics that influence how consumers make decisions
regarding insurance purchases. During my internship at The Leading Solutions, a prominent
insurance provider known for its innovative offerings and customer-centric approach, I gained
valuable insights into the insurance landscape and consumer preferences. In today's rapidly
evolving market, understanding consumer behavior is essential for companies like The Leading
Solutions, which strives to meet the diverse needs of its clientele. As consumers increasingly
seek more than just financial protection—demanding comprehensive solutions tailored to their
specific circumstances—this study seeks to identify the key factors that drive their choices.
Recent trends indicate that consumers are not only concerned with coverage but also with the
values and services that insurers provide.
The study of factors affecting customers investment in life insurance policies has yielded
important insights on how consumers use this industry. It is determined that demographic
attributes including age and income and awareness and trust in insurance companies drive
consumer attitudes while investment decisions are driven mostly by demographic factors such
as age and income. Investment is strongly encouraged by cultural context and social influences
(recommendations from people in family and friends).
With growing interest, however, many consumers are still underinsured because of a lack of
understanding, perceived costs or distrust in the insurance industry. The study highlights the
need for enhancing consumer education and improving transparency in relation to product
offerings, building trust through the communication, and offering products that will make life
insurance less complicated.

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 CHAPTER 12
BIBILIOGRAPHY

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Li, Y., & Wang, H. (2023). The impact of negative reviews on consumer perceived risk
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Suthakar, S., & Ragunathan, T. (2023). A study on customers' perception towards Life
Insurance Corporation products concerning Chennai city. International Journal of
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https://doi.org/10.26668/businessreview/2023.v8i8.2955

Upadhyaya, D., & Badlani, M. (2011). Customer perception towards life insurance in
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and Scientific Innovation, 8(4). Retrieved from https://www.ijraset.com/research-
paper/customer-perception- towards-life-insurance-in-Vadodara-city

pWand, S., & Sharma, R. (2015). Factors influencing clients in choosing insurance companies:
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